Credit Card FAQ – Australia (2026)

Below are answers to common questions Australians ask before applying for a credit card.

What is the average credit card interest rate in Australia?

Most standard purchase rates range between 18% and 22% per year. Low interest cards may offer lower ongoing rates.

How does the interest-free period work?

Most cards offer up to 44–55 days interest-free on purchases, but only if the statement balance is paid in full by the due date. Learn more in our interest guide.

What is a balance transfer credit card?

A balance transfer card allows you to move existing debt from one card to another, often with a 0% introductory interest period. See our balance transfer comparison.

Are rewards credit cards worth it?

Rewards cards can be valuable if you pay your balance in full each month. Otherwise, interest charges may outweigh rewards. Compare options in our rewards guide.

Do credit cards affect your credit score?

Yes. Applying for multiple cards in a short period or missing repayments may negatively impact your credit score.

What credit limit should I choose?

Choose a limit that fits your income and spending habits. Higher limits increase risk of overspending.

Are student credit cards different?

Student credit cards usually have lower limits and fewer premium features. See our student card guide.